According to Bloomberg, China Mobile has been in discussions with HKBN’s major shareholders, and buyout firms MBK Partners and TPG Inc.
Sources have revealed that the telecoms giant has expressed willingness to offer at least HK$5 per share for their stakes, valuing the broadband provider at over HK$6.5 billion ($835 million).
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China Mobile is now negotiating with MBK and TPG over the price. The shareholders may seek a higher valuation, and there is no guarantee that an agreement will be finalised, the sources noted.
HKBN shares have risen 24% this year, bringing the company’s market capitalisation to about HK$5.7 billion.
Other potential buyers, including private equity firms, remain interested in HKBN, and a competing bidder could still emerge, the sources added.
This comes as HKBN shares were suspended from trading on Tuesday morning in Hong Kong pending an announcement under the city’s takeover regulations.
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